In general, prior to 2020, one who donated cash or property to charitable organizations could claim a tax deduction only if the donor itemized deductions in determining his or her tax liability. Further, deductions for donations to charitable organizations generally were limited based on a percentage of the donor’s income.
The CARES Act amended the tax law to allow individual taxpayers who do not itemize deductions to nevertheless claim a deduction (in addition to the standard deduction) for up to $300 in cash donations to certain qualifying charities, and the income limitations on deductions for cash donations to qualifying charitable organizations are temporarily eased for individual and corporate donors that make an appropriate election. Further, income limitations on deductions for certain donations of food to charitable organizations are eased for certain corporate donors.
How Manatt Can Help: Manatt attorneys help clients to understand these rules and limitations and to plan their charitable donations accordingly.
For More Information: Contact Jill Dodd, partner and leader, Estate Planning and Personal Representation, at 415.291.7421 or jdodd@manatt.com; Scott Johnson, counsel, Manatt Tax, at 415.291.7428 or sbjohnson@manatt.com; Megan Christensen, partner, Manatt Tax, at 202.585.6594 or mchristensen@manatt.com; or Jeff Nguyen, partner, Manatt Tax, at 415.291.7423 or jnguyen@manatt.com.